U.S. Congress Advances $900B Defense Bill Targeting China

Congress has released a $900 billion defense bill that aims to reshape U.S. economic and military competition with China. This legislation includes new investment restrictions and bans on a range of Chinese-made technologies from Pentagon supply chains.

It authorizes War Department spending at $8 billion above the White House's request and includes a 4% pay raise for enlisted service members. The bill expands counter-drone authorities and directs investments in missile defense and nuclear modernization programs.

Additionally, it extends Pentagon support to law enforcement operations at the southwest border and strengthens U.S. posture in the Indo-Pacific, including funding for Taiwan's security cooperation program.

In a notable addition, the legislation mandates FBI disclosure during investigations of presidential candidates, a provision that faced internal party disputes. Significant measures in the bill include a new 'Artificial Intelligence Futures Steering Committee' and restrictions on biotech contracts with Chinese firms linked to the People's Liberation Army.

The bill also establishes an outbound investment screening system, requiring U.S. companies to alert the Treasury Department about investments in high-risk Chinese technologies, allowing for potential blocking of deals.

Furthermore, it bans the Pentagon from purchasing certain Chinese-origin items and mandates phasing out Chinese-made technology equipment. The legislation directs the State Department to deploy Regional China Officers to monitor Chinese activities globally, especially in relation to the Belt and Road Initiative.

It also includes provisions related to Israel's defense systems and reauthorizes the Ukraine Security Assistance Initiative at $400 million per year for fiscal years 2026 and 2027. Lastly, the bill repeals two outdated war authorizations from the 1991 Gulf War and 2002 Iraq War but retains the 2001 Authorization for Use of Military Force, which remains central to U.S. counter-terror operations.

The House leaders aim to bring this bill for a vote soon, following clearance through the House Rules Committee.